Telefónica closed the year 2023 with an increase in its income of 1.6% to 40,652 million, in 2022 and the highest volume since the year of the outbreak of the pandemic, according to the information deposited this Thursday with the National Commission of the Market of Securities (CNMV).
This good functioning of the business was financially impacted by the provisions of 1,300 million euros that the company made in the last quarter of 2023 to face the ERE proposed by the company and to which 3,640 workers have taken advantage, an amount higher than the limit. maximum of 3,421 that the company had set.
An extraordinary event to which is added a deterioration in the business in the United Kingdom where the company chaired by José María Álvarez-Pallete shares a joint venture with Virgin, VM02, and which has forced Telefónica to make an accounting adjustment derived from the rise in prices. discount rates and macroeconomic conditions in the United Kingdom. Two extraordinary events that together translate into losses of 892 million euros.
Without taking these events into account, Telefónica’s ordinary net profit in 2023 would have reached 2,369 million euros, 17.1% above that achieved in 2022.
The operating profit, linked to business activity, (ebitda), once again registered growth of 0.1%, in the last quarter of 2023, something that had not happened since 2019. “The operator has returned to growth, with a greater profitability and, furthermore, in a more sustainable way. Income increases and cash flow generation continues to be robust, which allows us to comfortably cover the dividend of 0.30 euros per share entirely in cash,” explained José María Álvarez Pallete in the note issued by the company.
The net financial debt ended the year at 27,349 million euros and the debt ratio stood at 2.60 times.
“In 2023, we have delivered in execution, with solid financial and operational performance, meeting the objectives, improved upwards in 1H 23, and maintaining our commitments to shareholders via cash generation. We have grown in revenue year-on-year, we have increased profitability, achieving greater customer commitment and strong growth in cash generation. The good momentum is reflected in the improvement of trends in Q4 23,” points out the president, José María Álvarez Pallete in the information sent to the market.
Regarding the shareholder remuneration corresponding to 2024, the company confirms the distribution of a cash dividend of 0.30 euros per share payable in two tranches, in December 2024 (€0.15) and in June 2025 (0 €.15), in line with what is also established in your GPS plan. Additionally, it will amortize 1.4% of the company’s share capital, the equivalent of the treasury stock existing as of June 30, 2023.
Regarding the dividend corresponding to 2023, also €0.30 per share in cash, the company already paid the first tranche (€0.15) last December, and plans to pay the second (0.15 €) next June.